How Interest Rates Impact your Borrowing Capacity Higher interest rates make it harder for borrowers to qualify for larger loans or even loans of any size. That's because for every increase of 0.50 percentage points in interest rates, the average person's borrowing capacity falls by about...
[vc_video link='https://www.youtube.com/watch?v=5g22qy6DrLI'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Asset Class Performance October was generally a risk-off period with declines in both global equity and bond returns. Solid US economic data and uncertainty ahead of the US Presidential election saw both bond yields and the $US rise,...
Market Trends: Insights on Inflation, Interest Rates, and Sector Shifts Economy & Central Bank Outlook The major monetary highlight during the past month was the larger than expected 0.5% US Fed rate cut, taking the Fed funds rate to a 4.75-5% range. Markets are anticipating 1.75%...
Market Trends Economy & Central Bank Outlook Continued benign US inflation reports and growing expectations that the US Federal Reserve would cut interest rates at the September policy meeting led markets to price in deeper rate cuts in both Australia and the US over August. Fed...
How to prepare for falling term deposit rates In recent years, cash has stood out among defensive assets, reclaiming its title as ‘King’ thanks to steep interest rate hikes by the Reserve Bank of Australia (RBA). Since the cash rate peaked at 4.35% in November 2023,...
Market Trends: Rate cut expectations scaled back [vc_video link='https://www.youtube.com/watch?v=IhvHI8sKO_0'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Both equity and bond markets weakened in April due to a significant rebound in bond yields. Bond yields rose as sticky inflation and resilient economic growth caused markets to further scale back...